What will be the net present value of the project

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Reference no: EM13910954

A project generates an operating cash flow of $20,000 each year. Initially, this 4 year project required $4,000 in net working capital. All working capital will be recouped at the end of the project. The firm also spent $15,000 on equipment to start the project. The equipment will depreciated straight-line to a book value of 0 at the end of year 4. What is the cash flow from assets for year 4 of the project if the equipment can be sold for $4,000 and the tax rate is 30%. What will be the Net Present Value of the project if the required return is 15%.

Reference no: EM13910954

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